What is the Full form of GST?
The GST full form is Goods and Service Tax. The Indian government levies a single indirect tax known as GST. It might be among the most important tax cuts the nation has ever seen. Indirect taxes such as VAT, Central Excise Tax, Luxury Tax, Service Tax Act, Entertainment Tax, and Entry Tax are all intended to be combined in the bill.
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To put it plainly, a normal indirect tax under GST, which implies GST, would be provided on all goods and services produced in the country and linked to imports. On March 29, 2017, Parliament approved the GST Act. On July 1st, 2017, the tax went into effect. GST was implemented to boost the country’s economic development and handle taxes more efficiently.
Types of GST
There are several types of GST, including
1. Central Goods and Services Tax (CGST)
The CGST is a tax imposed on the distribution of goods and services within a state. The Central Excise Duty, Services Tax, Additional Excise Duty, CVD (Countervailing Duty), and the Excise Duty on the Medical & Toiletries Preparation Act are among these taxes.
2. Integrated Goods and Services Tax (IGST)
The taxes paid for the worldwide delivery of services and goods are subject to IGST. For instance, if the goods are traded between Karnataka and West Bengal as well as two other states, the IGST will be applicable. In addition, IGST is levied on both imports and exports of goods and services from India.
3. State Goods and Services Tax (SGST)
The tax imposed on products and services delivered inside a state’s borders is known as the SGST. The act unifies the different state taxes, including the luxury tax, state income tax, entrance tax, entertainment tax, and others.
Commodities not subject to GST
Here is a list of products that are exempt from GST.
- Fillets & Fish
- Live animals
- Meat
- Trees & live plants
- Meat
- Alcohol
- Fertilizers
- Coffee & Teas
- Spices
- Dry fruits
- Vegetables
- Edible grains
- Musical & Industrial instruments
- Pharmaceutical & Drugs
- Claws & hooves
